ICAI Guidance Note 2025: ICAI Releases Guidance Note on Tax Audit Under Section 44AB of Income Tax Act

The Institute of Chartered Accountants of India (ICAI) has recently issued the Guidance Note on Tax Audit under Section 44AB of the Income-tax Act, 1961. These notes are being revised/updated as of 2025.

These Guidance Notes provide detailed instructions for Chartered Accountants (CAs) with a comprehensive framework to perform tax audits under Section 44AB of the Income-tax Act, 1961, keeping in mind the recent changes introduced by the Finance (No. 2) Act, 2024, and the Finance Act, 2025. This revised guide includes the latest amendments, new reporting rules in Form 3CD, and clear meanings of terms such as turnover, profession, and gross receipts.

It explains the steps to follow and how to report each clause when a tax audit is needed. It emphasises the importance of using professional judgment, following ethical rules, and keeping proper records. It also covers special situations, how GST affects audits, and presumptive income cases. Overall, this edition facilitates professionals carrying out tax audits correctly, efficiently, and in adherence with the law.